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A Global Shift in Foreign Aid, Starting in India

Discussion in 'World Economy' started by santosh, Mar 25, 2014.

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  1. santosh

    santosh Major SENIOR MEMBER

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    there can't be another example of Income Inequality, like of India....... first we have Per Capita Income of the above 3 as whole as below:


    Estimated number of Middle and 'Lower' Middle Class
    (for china, India, Pakistan, Bangladesh)

    Per Capita Income of the people above $2.0 per day income in these four countries

    here, if we consider people below this level having $1.5 per day average income as whole, hence around $500 a year this way, around, then we have an 'estimate only' calculation as below :tup:

    Pakistan: 60/40 = 1.5 * (3100-500) = 3900 + 3100 = $7,000 (40% of 170million = 68million around)

    Bangladesh: 76.5/23.5 = 3.255 * (2100-500) + 2100 = $7,308 (23% of 160million = 40million)

    India: 69/31 * (4000-500) + 4000 = $11,790 (31% of 1.3 billion = 400million)

    China: 30/70 * (9,900 - 500) + 9900 = $13,928 (70% of 1.4 billion = 1.0 billion)

    but in the above calculation we may clearly see that per capita income of people above $2 per day income of India and China is almost twice to that of Pakistan and Bangladesh. hence we would say that 80% of this category of Pakistan and Bangladesh would be among the Lower Middle Class, while there might be 50% of India and China would fall among the Lower Middle Class, rest are Middle Class, an estimate only :tup:).

    hence this above calculation says India is a country of 200million Middle Class and 200million Lower Middle Class. rest of 900million are poor by the criterion of UN. while only 400million fall among the poor as per the measurement of Indian government, which still consider $1.25 per day to categorize poor :coffee:

    and yes, it put around 500million people of China among the Middle Class category, around (20% of 68million =)14million of Pakistan and around (20% of 40million =) 8.0million of Bangladesh among the Middle Class of this standard.) :tup:


    => and yes this estimate would get the higher size for developing countries while considering the method which was in application till 2007, which used to consider GDP on PPP of India type developing countries at least 50% higher, considering 'estimated' undocumented part of GDP too. the method which was in application by the World Bank and IMF both till 2007. as below :coffee:

    => List of countries by percentage of population living in poverty - Wikipedia, the free encyclopedia

    again, just to discuss the topic, we find around 30% population of India below $1.25 per day income in the above list. and if we adopt the old method, while considering its uniform effects on the all income group, then we find $1.25 = 5.16/3.19 * 1.25 = $2.02. means, $1.25 per day income is equivalent to $2.02 per day income by old method, which was in application till 2007.

    hence this way we find only 30% people below poverty line of International Standard of $2.0 a day income too :coffee:
     
    Last edited: Apr 6, 2014
  2. santosh

    santosh Major SENIOR MEMBER

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    .
    Few Key Points I always mention on this Topic as below:

    these are my own ideas so it does require criticism by other members to make the topic interesting :tup:

    1st; if the poor of India ask the Western nations to share the burden of subsidies then they will simply kick these shiits of India, isn't it? and if its only Indian Middle Class who is generating money and running government and also paying heavy price for the welfare/subsidies for poor, then they do have a right to ask the Indian Government, "to what extent they will have to bear this burden of tax just to feed poor, and whether they will remain capable enough in future also to bear this burden on long run if the government doesn't control the population?????" :facepalm:

    like the news as below, around 50% indian population is based in agriculture only, around 600mil, while even 200mil population may produce the same agriculture output? and the same in cities of India, around 50% people just try to earn a decent salary which they can't, simply because too many mouths and limited resources. and Indian Middle Class is just paying high price to feed these around 600mil 'excess' population, but still there is no effort to have a control on this growing population????

    2nd; here for example of Pakistan and Bangladesh, right now overly populated Pakistan is full of target killings, simply because too many mouth and no resources to feed them. its also similar to 'genocide' itself?????? and Bangladeshis just want to run from Bangladesh, mainly to India. its the worse to see people dying without dignity than controlling population by force........

    3rd; many economists of India advocate "food security"/ "free medicines"/ "right to get a job" etc in India which is not possible until the Indian government may control its population. they simply can't feed 1.2bil population from the limited natural resources they have . USA is 3 times bigger in area than India but population of India is 4 times to USA? and on the top of that, Indian government wants to give welfare/ heavy subsidies to its people? if India face a sudden fall like ASEAN in late 90s and South America like in 80s, all these they will have to withdraw after that so better they keep habit to live in less and get rid off the unnecessary subsidies/welfares . for example, we always find Pakistan increasing petrol and diesel prices as per market prices as they can't afford to give subsidies while the people of Pakistan are poorer than India, but Indian government always hesitate to do so? but the day India will reach level of Pakistan, just one good economic fall is required, and India will learn all by themselves. :wave:

    4th; here we have report from world bank that around 60% people of India are living with income less than $2.0 per day, as below

    here, how is it wise to have high population if you can't give them good life? how is it advisable to have more population this way??? :facepalm:

    => Poverty headcount ratio at $2 a day (PPP) (% of population) | Data | Table

    5th; Population of India was hardly around 341 million at the time of freedom, in 1947, and we can't have more than 700 million people, and we need a national consensus on it. :india:

    and as Overpopulation of India is directly related to consumption of natural resources of the world, high pollution and hence Climate Change due to high consumption of energy. reduced water level has also been caused in India due to the same high population and hence high demand reasons, hence India is directly answerable to the rest of the world about the measures it is adopting to reduce its population to 700 million, say by 2050
    :truestory:

    we can't let India become one of the reason for the destruction of this world, as the Earth belongs to every person of the world, regardless any nationality :nono:

    6th; and here, first there is no control on the population, as much as India can have, and on the top of that, they want to feed them for nothing too :rofl:

    => At Rs 1,25,000 cr, Food Security Bill largest in world: Implementation a challenge, says Morgan Stanley - Economic Times
     
  3. forjeet

    forjeet Lieutenant FULL MEMBER

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    Ok what ever numbers say
    2 dollars = Rs.120*30=3600+ per month.......................... is RICH :rofl: according to reports
    Our poverty figures (national poverty line) has been fixed at Rs 816 per capita per month for rural areas and Rs 1,000 for urban areas... is a JOKE

    What it differentiate between Ind & what ever rest of countries is our people still vote CORRUPT PEOPLE (by caste/religion)
    and not come in STREETS (PROTEST) LAKHS are Looted........... Indian culture (Peaceful) & chalta hi attitude

    So comedown to ground.......... Look around Real India is very Poor& Slum country ......... sending satellites to MARS/aid to poor countries
    Sorry to say ............I didn't understand what our POLITICIANS/BABU/ELITE is SMOKING
     
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  4. santosh

    santosh Major SENIOR MEMBER

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    look, its the "minimum wage" to avoid Poverty Line, get the point? :coffee:

    from here, it does state that a 4 people family, 2 parents and 2 kids, may somehow bear their expanses on Rs.15,000 a month, while living in small towns of India.....

    and here, as per the post#17, the main issue to discuss, " if the poor of India ask the Western nations to share the burden of subsidies then they will simply kick these shiits of India, isn't it? and if its only Indian Middle Class who is generating money and running government and also paying heavy price for the welfare/subsidies for poor, then they do have a right to ask the Indian Government, "to what extent they will have to bear this burden of tax just to feed poor, and whether they will remain capable enough in future also to bear this burden on long run if the government doesn't control the population?????" :facepalm:"

    check post#17 in details

    and this Over Population Issue is also discussed in details in the thread as below too :tup:

    Population based on “Resource Sufficiency Evaluation” is Crucial | Indian Defence Forum
    .
     
  5. forjeet

    forjeet Lieutenant FULL MEMBER

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    Min wage 174*100 days =17400/12= 1450 PER MONTH ......... based on ur data is AGAIN A JOKE just making ppl jokers by Poverty line & MGNREGA is a just DIRTY LABOR WORK WHY any educated do

    Our PRIME MINISTER RAJIV GANDI PROUDLY ANNOUNCED IN ASSEMBLY FOR 1/- rupee ONLY 15 PAISE REACH POOR ............... WHO is eating 85 paise BY YOUR LOGIC POOR:sarcastic:

    POLITICIANS/BABU/ELITE........... eating and Middle class paying

    so comedown to ground.......... Look around Real India is very Poor& Slum country.........
     
    Last edited: Apr 7, 2014
  6. santosh

    santosh Major SENIOR MEMBER

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    hmmmm, things are changing day by day, and we hope it keep getting better in future.......
     
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  7. santosh

    santosh Major SENIOR MEMBER

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    Amid slowdown, India ramps up aid for neighbours
    Mar 18, 2012

    NEW DELHI: A difficult economic situation notwithstanding, India will be stepping up its assistance programme to its neighbouring countries in the coming fiscal.

    The biggest chunk of India's assistance programme is reserved for Afghanistan, Myanmar and Bhutan that are provided for in the 12th five-year Plan. But under the non-plan head, Bhutan takes the largest chunk with a combined loan-grant amount of Rs 1,500 crore. Bhutan has traditionally been the largest recipient of Indian aid, with massive hydro-electric projects being covered in the Plan expenditure. :tup:

    Afghanistan and Myanmar are big recipients, both strategically vital for India's security and economic interests. India has invested heavily in infrastructure projects in Afghanistan, including roads, parliament buildings and capacity building for the Afghans in various fields. India also runs the biggest children's hospital in Kabul. :tup:

    However, recently, India won the Hajigak iron ore mines that will necessitate building several roads connecting the mines to border points. A new component of India's aid package to Afghanistan is in the security sector. As a result of the strategic partnership agreement with Afghanistan last year, India is committed to training and equipping Afghan national security forces. This will include training programmes, to be mainly held in India.

    New Delhi is building a multi-modal transport system in Myanmar that could also serve to improve trade with the country that India now regards as the gateway to south-east Asia. :cheers:

    Other countries that will continue to receive Indian aid this fiscal is Sri Lanka, where India has invested in rehabilitation and rebuilding programmes in the north, railway lines and oil terminals as well as building houses for the internally displaced persons from the Tamil regions. Bangladesh also takes a sizeable chunk of Rs 250 crore after the PM announced a $1-billion credit line for the country in 2010. :coffee:

    Bafflingly, the government spends a minuscule amount for "energy security" in the MEA, but it's so small that it's unclear what this would be used for. Equally strangely, Mongolia gets Rs 2 crore this year from India, but the reason for that remains unclear.

    Amid slowdown, India ramps up aid for neighbours - Times Of India
     
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  8. santosh

    santosh Major SENIOR MEMBER

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    If India doesn't want our aid, stop it now, Cameron told after country labels £280m-a-year donations as 'peanuts' :facepalm:
    6 February 2012

    David Cameron was under intense pressure last night to slash the £1billion in aid Britain gives to India after the country said it no longer wanted the money.

    India's finance minister Pranab Mukherjee said the booming country should 'voluntarily' give up the £280million a year it receives from Britain. He told the Indian parliament: 'We do not require the aid. It is a peanut in our total development spending.' :india:

    It also emerged that in a leaked memo dating from 2010 India's then foreign minister Nirupama Rao suggested India should not accept any further aid from Britain's Department for International Development because of the 'negative publicity of Indian poverty promoted by DFID'. :uk:

    Sources in Delhi suggested British officials begged India to accept the aid. :tsk: :facepalm: One commented: 'They said British ministers had spent political capital justifying the aid to their electorate.

    'They said it would be highly embarrassing if [India] pulled the plug.'

    The revelations raised fresh questions last night for ministers who have been struggling to defend the Indian aid programme in the face of criticism from the public and Conservative MPs.

    They also risk raising fresh questions about the Coalition's controversial decision to pour billions more into foreign aid at a time of deep spending cuts at home. Tory MP Philip Davies called for the Indian aid programme to be cancelled immediately.

    Mr Davies said: 'India spends tens of billions on defence and hundreds of millions a year on a space programme – in those circumstances it would be unacceptable to give them aid even if they were begging us for it. :coffee:

    'Given that they don't even want it, it would be even more extraordinary if it were to be allowed to continue. :tsk:

    'There will be millions of hard-pressed families wondering why on earth the Government is wasting money in this way.'

    Fellow Tory Douglas Carswell said: 'This is concrete proof that Britain's aid programme is run in the interests of Whitehall officials and the DFID machine.

    'The fact is that India's economy is growing much faster than our own. We should be encouraging free trade with them and trying to learn from them rather than handing out patronising lectures.'

    Tory MP Peter Bone urged ministers to abandon the 'vanity project' of pursuing a target to hand out 0.7 per cent of the UK's entire national income in aid.

    He said: 'India has its own foreign aid programme so it is absurd for us to be still giving them aid. They are more than capable of looking after their own issues.

    'As for the 0.7 per cent target, it is a vanity project that is being pursued for no good reason at all. I do not understand the Government's position on this and I don't think the British public do either.'

    Some critics in India have also questioned the value of the aid, warning that much of it is lost to corruption and bureaucracy.

    As recently as 2010 the country was the biggest net recipient of British aid, receiving £421million.

    Despite India's rapid economic development the International Development Secretary Andrew Mitchell decided last year to approve a further £1.1billion in aid over the next four years.

    The timing of the latest revelations is particularly embarrassing for ministers, coming in the wake of India's decision last week to reject the British-built Typhoon fighter jet as preferred candidate for a £13billion defence deal. :tsk: :facepalm:

    Mr Mitchell said last year that the continuing aid programme was partly 'about seeking to sell Typhoon'.

    British foreign aid: India tells Britain 'we don't need the peanuts you offer us' | Mail Online
     
  9. santosh

    santosh Major SENIOR MEMBER

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  10. santosh

    santosh Major SENIOR MEMBER

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    @Averageamerican

    @Picdelamirand-oil

    the above fight between Indian and British side occurred during MRCA deal, which was won by Rafale. and only one statement i like in the above news, that is, India's wish to " 'voluntarily' give up the Aid"but they couldn't, as British side made them accept the Aid :tsk:. and then all the Pigs Talks start..... :facepalm:
    .
     
  11. santosh

    santosh Major SENIOR MEMBER

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    we have a picture of changing India as below, which may have a place here too, i think :tup:

    Per Capita Income of India

    Considering the method which was in application till 2006, by both World Bank and IMF

    British Left around 2% to 5% rich and rest poor in 1947, out of total 347 million population in 1947, while we now have around 350 million Middle Class of India whose Per Capita Income is well over $20,000+ on PPP now, similar to Very High HDI countries like Argentina, Poland, Saudi Arabia etc :india:

    We have new GDP Per Capita on PPP calculation for India considering the year 2013 also, as below:

    now poverty of India is because of its over population. Most of the problems of India is because of its Over Population and India has to reduce its population only. otherwise India has around 350mil Upper Middle Class, more than total population in 1947, whose per capita income on PPP is similar to the Very High HDI countries like Argentina, Poland, Saudi Arabia etc. one day I calculated as below:-

    first, we find GDP on PPP of India was $4.8tn in 2012 but its still manipulated by the US/UK since 2007. as, till 2006, we had a different way of measuring GDP on PPP which used to include estimated undocumented part of GDP also. and I remember, this way GDP of high population 'developing' countries was around 50% to 80% higher, and for the middle order countries like Brazil/Turkey it was around 10% to 25% higher. and for the developed nations, the difference was hardly around 1% to 3% by that "Old Method" which was in application till 2006. like as below:
    means, GDP of India on PPP was already $5.16tn in 2007, higher than Japan that year, making it the 3rd Largest Economy on PPP by 2007 itself this way. :cheers:

    again we have India's growth rate since 2007 as below:

    India GDP Annual Growth Rate


    here we find, "Average Growth Rate" of India from first quarter of 2008 till the December quarter 2012, stood at around 7.6%, on 'annual' basis. hence considering GDP on PPP of India at $5.16tn in 2007 by Old Method as above, with the estimated 5.0% growth by 2013, we may calculate its value by 2013, after 6 years since early 2008, as below:

    GDP on PPP of India by end 2012 = 5.16*1.076*1.076*1.076*1.076*1.076*1.05= $7.81 trillion on PPP

    but we would also get to know that PPP value consider value of goods and services in US$ term, means we would also include the factor of inflation of United States also. and if we consider average 2.0% inflation of US for these 6 year in between early 2008 to 2013, with considering an overall factor of just 1.12 this way, then GDP on PPP of India comes around = 7.81* 1.12= $8.75tn by 2013. and it still hasn't included 'Value Added' effects........

    again, we know that share of agriculture would be around 17.0% in India's GDP in 2013. therefore, we find share of agriculture in indian economy, 0.17 * 8.75= $1.5 trillions (around), on which 50% population of india is dependent. means around 600mil people based on agriculture in india have per capita income around = $2,500 on PPP by 2013 this way, which is itself similar to the better side of Lower Order Countries like Bangladesh.....

    this way, 8.75 - 1.50 = $7.25tn is left for rest of 600mil people based in industry and service in India, with per capita income of around $12,100 on PPP which is higher than Middle Order Countries like Brazil, South Africa etc..........

    The World Factbook


    again, we have news that 25% of the population of cities are either in slum or in bit better condition only. so we would consider per capita income of 300mil living in cities in low condition at hardly $3,000 which takes a share of $900 billion from its GDP. hence we are then left with around 7.25 - 0.9 = $6.35 trillions for the rest of 300 mil people living in cities, the so called Middle Class of India with per capita income around $21,166 on PPP this way.

    but it is estimated that out of total 600mil people based in agriculture sector, it also has around 50mil Lower Middle Class with Per Capita Income around $15,000 on PPP. (as we know that agriculture has higher share of 'undocumented' part, with that, Agriculture also has higher share of non-taxable business of India.) Hence, we find total middle class of India around 350mil with per capita income around $20,000+ on PPP which is similar to Very High HDI countries like Argentina, Poland etc, which is more than total population of India at the time of freedom in 1947 :coffee:


     
    Last edited: Apr 19, 2014
  12. santosh

    santosh Major SENIOR MEMBER

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    The Industrialized India

    ; India has now entered among the Newly Industrialized nations as below:

    => Newly industrialized country - Wikipedia, the free encyclopedia


    India had overall 5.81% growth rate since 1951.....

    We now have Industrialists as below too, who are building the nation. as we do know that our these honored Super Riches/ Billionaires don't have money in pocket, but they are Industrialists/ billionaires in terms of the industries they have to provide employment, generating taxes for the government which government use to help the common public itself, with introducing new technologies too through their industries, hence building the nation this way....:india:

    The report as below, mention around 115 Billionaires in India, as compare to hardly around 60 by Forbes. its because Forbes estimate only Share values, while the report as below includes, "shares in public and private companies, residential and investment properties, art collections, planes, cash and other assets, according to Wealth-X...".
    World's Billionaire Club Grows; Ultra Millionaires Lose Money - WORLD PROPERTY CHANNEL Global News Center

    and here is the main report, as below.....
    Wealth-X World Ultra Wealth Report 2011-2012 | Wealth-X


    Further to the above talks, BRIC economies as whole have their UHNWI estimate, with India's at around 8,200, is given in the article as below:


    => BRIC Country Super-Rich Worth $4 Trillion

    The future of wealth will be built with BRICs.

    According to new data from Wealth-X, the wealth research and consulting firm, Brazil, Russia, India and China now have a combined 25,600 people with $30 million or more in net worth (which includes shares in publicly traded and closely held companies, residential and investment real estate, art, planes, cash and other investible assets).

    That is about half the number of ultra-high-net individuals in the U.S., according to Wealth-X.

    The BRIC ultrarich have a combined net worth of $4.125 trillion, compared to $6.4 trillion for the U.S.

    [​IMG]

    What is most interesting about the BRIC data is the concentration of wealth at the very top of the wealth pyramid. In Russia, the nation’s 80 billionaires account for 7% of the total population of people with a net worth of $30 million or more, but they own 84% of that group’s $640 billion in wealth.

    In Brazil, the nation’s 50 billionaires account for less than 1% of the ultrarich population but a third of the group’s $890 billion in wealth. India’s 115 billionaires represent 1.4% of the total ultrarich population and 20% of the group’s wealth of $945 billion.

    China’s billionaires account for 1% of the ultrarich and about a third of their wealth of $1.65 trillion.

    The U.S., of course, isn’t exactly a model of equity when it comes to billionaires and the ultra-rich. Its 450 billionaires account for less than one percent of the ultra-rich population but control 25% of the group’s $6.4 trillion wealth.

    But the fastest global growth in billionaires and their lesser ultra-rich aspirants will likely be from the BRICS rather than the U.S. or Europe.

    “In Russia, as in other emerging markets….billionaires and near-billionaires, followed in aggregate by the mass of ultra-high-net-worth will dominate wealth,” according to Wealth-X.

    Which country would you want to live in if you had a net worth of $30 million or more?

    BRIC Country Super-Rich Worth $4 Trillion - The Wealth Report - WSJ
     
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  13. santosh

    santosh Major SENIOR MEMBER

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    @Averageamerican
    @varchasva

    along with the above Pig Talks, as discussed in post#23,#24,#25, this is how this gentleman beg for job in India, in behalf of his voter :facepalm:

     
  14. santosh

    santosh Major SENIOR MEMBER

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    Dollar Billionaires in Poor Countries: India’s “Philantrocapitalism”
    September 10, 2012

    In this time of global financial crisis, when so many are suffering financial hardship, most countries have witnessed increases in their number of dollar millionaires. These ‘High Net-Worth Individuals’ (HNWI), according to a report by Capgemini and Merrill Lynch Wealth Management, have in recent years more than doubled in India. In 2008-09, India had 84,000 HNWIs. By 2010, it had risen by 50 per cent (126,700), the biggest increase of all countries.

    In the worldwide list of dollar billionaires for 2010, India ranked third with 69, behind China (128) and the US (403). Forbes states, however, that the wealthiest 100 Indians are collectively worth $276 billion, while their top 100 Chinese counterparts are worth $170 billion. The three richest Indians together had more wealth the top 24 Chinese billionaires combined.

    You don’t have to look very far for evidence of their wealth, with more than 30 luxury skyscrapers springing up in Mumbai. For the rich occupants, the taller, the better, to escape from the reality of India below — the railway tracks, low-rise tenements, choking traffic and the 55 per cent of the city’s population who live in slums. People are paying nearly two million dollars for a designer apartment, built in complexes with private cinemas, swimming pools, floodlit tennis courts and high-level security. Developers believe each year Mumbai can absorb between 30,000 and 40,000 more homes in the one million dollar-plus category. (Another housing bubble in the making?)

    Such extreme wealth doesn’t go unnoticed. In the UK, people are questioning the decision to keep giving India some $460 million of aid annually, which makes India the largest single recipient of British aid. Many ordinary Brits are asking if it can be right that the downtrodden British taxpayer gives such sums to a nation that boasts such wealth (albeit highly concentrated). :coffee:

    Siphoning off the country’s wealth

    Some of the most damning comments about India come from French author Dominique Lapierre, whose book royalties from ‘City of Joy’ fund projects for the underprivileged in India. He is frustrated by the greed and corruption that he encounters.

    Lapierre’s non profit organisation, City of Joy Aid, runs a network of clinics, schools, rehabilitation centres and hospital boats. It operates 14 projects in India, most in the Sunderbans area. However, 90 per cent of free medicines get stolen in the journey from Delhi to Kolkata, and the project is thus forced to buy them at high prices from the market.

    A few years ago, Lapierre set up in Delhi a trust which offers a tax-deductible certificate for all donations. With more than a hint of disappointment, he notes the foundation still does not have any funds from affluent Indians who seem reluctant to help their fellow country-folk.

    Quite the opposite, it seems. Much of India’s wealth has been creamed off into Swiss banks, robbing ordinary folk of a quality of life they can now only but dream of. According to some estimates, it could be over Rs 7,280,000 crore (around $1.6 trillion). Data from the Swiss Banking Association in 2006 indicated that India had more black money than the rest of the world combined, or 13 times India’s total national debt. :facepalm: Global Finance Integrity notes this siphoning of wealth has served to widen the gap between rich and poor and asserts the main guilty parties have been private organisations and High Net Worth Individuals.

    By contrast, Global management and consulting firm Bain notes philanthropic donations amount to just 0.6 per cent of India’s GDP. This is not too good when compared to giving in the US and UK, for example, but is better than rates in other developing countries like Brazil and China. In the US, individuals and corporations are responsible for 75 per cent of charitable gifts, whereas in India individual and corporate donations make up only 10 per cent of charitable giving. Some 65 per cent comes from India’s central and state government, and the remaining gifts are provided by foreign organisations.

    In India, giving does not rise with income and education. As a percentage of household income, donations by the wealthy actually decrease. From an analysis of 30 HNWIs in India, Bain noted that they contribute, on average, just around one-fourth of one per cent of their net worth to social and charitable causes.

    All of this is not meant to imply that philanthropy is absent in India. Far from it. Vineet Nayyar’s Rs 30 crore gift (just under $7 million) to the Essel Social Welfare Foundation is a high-profile example of philanthropic giving. Over the years, Rohini Nilekani has donated $40 million to numerous causes that try to tackle the root causes of social problems and not merely the symptoms. Her biggest contribution has been to Arghyam, a Bangalore foundation that promotes clean water and hygiene, which now has projects in 800 villages. Philanthropy can and does positively impact people’s daily lives.

    Philanthrocapitalism: a plaster on a gaping wound

    What is really required, though, is a proper redistributive system of taxation, effective welfare provision and genuine economic democracy through forms of common ownership to help address inequality and poverty. In the absence of such things, wealthy philanthrocapitalists will have a major say in deciding which problems are addressed and how, and some will be highly selective.

    For instance, critics of Bill Gates say his foundation often ends up favouring his commercial investments. Instead of paying taxes to the state coffers, he donates his profits where it is favourable to him economically, such as supporting GM crops in Africa or high tech patented medicines. ‘Giving’ often acts as a smokescreen for channeling funds into pet projects and ‘business as usual’, with rich corporations receiving money to shape the world in their own image and ultimately for their own benefit. Apparent benevolence can have sinister motives, just like certain governments which provide money in the form of ‘development aid’ that is intentionally used to fund actions that serve geo-political self interest and ultimately undermine the recipient state.

    Philanthropy isn’t necessarily opposed to capitalism; it’s very much part of it. Capitalism is designed to ensure that the flow of wealth goes upwards and remains there via, among other things, the privatisation of public assets, deregulation of the financial sector, the use of subsidies and tax policies that favour the rich, the legal obligation to maximise shareholder profits and the consistent downward pressures on labour costs.

    Professor Ha Joon Chang of Cambridge University says that economics isn’t a social science anymore, but adopts the role the Catholic Church played in medieval Europe. Essentially, economic neo liberalism is secular theology used to justify the prevailing system, with the hope that some drops of wealth will trickle down an extremely thin funnel to placate the mass of the population. Widening the funnel slightly by making benevolent donations will not address the underlying issues of a failed system. :usa: :tsk:

    For example, consider that one in four people in India is hungry and every second child is underweight and stunted. Environmentalist Vandana Shiva argues that hunger is a structural part of the design of the industrialised, globalised food system and of the design of capital-intensive, chemical-intensive monocultures of industrial agriculture. The long-term solution for hunger lies in moving away from and challenging the centralised, globalised food supply controlled by a handful of profiteering corporations.

    This type of built-in structural inequality, whether it concerns hunger, poverty, housing, income or health, is part and parcel of a development process that is skewed by elite interests in India and at the World Bank and by the corporations that pull the strings at the World Trade Organisation, who have all succeeded in getting their ‘globalisation’ agenda accepted. No amount of philanthropy, regardless of how well meaning it may be, will remedy the overall destructive effects of the type of capitalism (and massive corruption) being embraced by India’s economic and political leaders.

    Originally from the northwest of England, Colin Todhunter has spent many years in India. He has written extensively for the Bangalore-based Deccan Herald, New Indian Express and Morning Star (Britain). His articles have also appeared in many other newspapers, journals and books. His East by Northwest site is at: East by Northwest :tup:

    Dollar Billionaires in Poor Countries: India’s “Philantrocapitalism” | Global Research
     
  15. santosh

    santosh Major SENIOR MEMBER

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    India increases aid to Sri Lanka
    Mar 2, 2013

    CHENNAI: Even as the anti-Sri Lanka mood in Tamil Nadu is getting more belligerent, the Centre has increased its annual grant to the island nation in the Union Budget. The allocation has gone up to Rs 500 crore for 2013-2014 from Rs 290 crore last year. It was Rs 181.94 crore in 2011-2012. The Budget has allocated Rs 5,550 crore as aid for foreign governments and organizations. :coffee:

    The grants for Sri Lanka are meant for rehabilitation of internally displaced Tamils, but parties in Tamil Nadu have accused the government there of diverting the Indian aid for other purposes. The issue could be raised again with the two main Dravidian parties, the ruling AIADMK and the opposition DMK, using it to corner the UPA government. The move comes at a time when political parties in the state have stepped up their offensive against the Lankan government for alleged war crimes.

    Recently, UK's Channel 4 had released pictures allegedly showing Balachandran, son of LTTE leader Velupillai Prabhakaran, minutes before and after he was killed towards the end of the decades-long civil war in 2009. Former Indian ambassador to Italy K P Fabian pointed out that increasing the grant to Sri Lanka was important. "It is not only in the interest of Sri Lanka. It is also in our interest. The Indo-Sri Lanka relationship is important." Sri Lanka should also understand that there is a growing international concern about the manner in which it has dealt with the Tamil question, he said.

    Under the non-plan category, the Indian government has proposed to donate Rs 4,143 crore to various foreign governments and organizations, besides Rs 1,406 crore under the plan category to Afghanistan, Bhutan and Myanmar. But unlike 2012-13, when the government allocated Rs 550 crore to Bhutan and Maldives, in the budget for 2013-14, there is no loan component to any country and all the money is treated as grant alone.

    Prof V Suryanarayana, a senior research fellow at the Centre for Asian Studies, said India has committed to help the Tamil minority in Sri Lanka in recent years. "Housing scheme and other development projects have been announced by the Indian government with the good intention of helping Tamils," Suryanarayana told TOI. But most of the projects have been getting delayed due to 'non-cooperative attitude' of the Sri Lankan government, he said. "For instance, housing for internally displaced Tamils have been delayed due to non-allotment of land by the local government," Suryanarayana said.

    He also pointed to the speedy progress of Chinese projects in Sri Lanka. "The projects of the Chinese government are being completed quickly with the co-operation of the Sri Lankan government," he said.

    In another strategic move, the Centre has increased grants for all the neighboring countries, including Afghanistan, Bangladesh and Nepal. The Indian government has not allocated any aid for Pakistan for the last three years. "It is important for India to promote development in its neighbourhood in SAARC region as well as African nations. Allocating funds to neighbours is not to compete with China. In our own foreign policy, we have expanded system of technical and financial assistance in recent years," said Fabian.

    India increases aid to Sri Lanka - Times Of India
     
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